Ford to cut 1400 jobs by the end of this summer


The company has about 30,000 salaried workers in the U.S.

Media reports about Ford's job cut program emerged earlier this week but were not confirmed by the automaker until today.

Ford Motor Co. said Wednesday, May 17, it plans to cut 10 percent of its salaried jobs in North America and Asia Pacific this year in an effort to boost profits.

The company says it will release more details to employees in June and expects the departures to be done by September. Ford's total salaried workforce in those regions is 15,000, said Ford spokesman Mike Moran.

"We have not announced any new people efficiency actions, nor do we comment on speculation", he said. The report states that the company's stock has fallen in the three years since Mark Fields become CEO.

About two-thirds of the buyout offers are in North America and the rest in Asia.

The job cuts are expected to be outlined as early as this week and mostly target salaried employees. In March, he tweeted in celebration of Ford's plans to invest $1.2 billion and create 130 jobs in the expansion, much of which had been previously planned and announced.

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Ford's traditional automotive business has struggled more than crosstown rival General Motors Co as the U.S. auto market declines following seven years of growth.

Lowering costs and being leaner and as efficient as possible, remains part of that focus, said the automaker in a prepared statement.

The Dearborn automaker has been under pressure both from its board of directors and from shareholders in recent days to show that its strategic plan is working as US industry sales begin to decline for the first time in seven years.

Ford said in January it was cancelling a planned Mexico plant and adding 700 jobs in MI. Electric auto maker Tesla Inc. recently surpassed Ford in market value even though it sells far fewer vehicles.

Investors should be aware of the potential backlash Ford could face from the White House, as job growth has been one of President Trump's pillars and talking points.

Ford's profits dropped by 35 percent in the first quarter of 2017 as a result of rising costs, pricey recalls and a drop in fleet sales. If you would like to discuss another topic, look for a relevant article.